Estimated Time to Read: 3 minutes
A Talent Strategy is a comprehensive plan that outlines how an Advisory Firm will attract, develop, and retain the best employees to achieve its business goals. A robust talent strategy encompasses various elements, transforming human capital management from a mere administrative function into a core business strategy.
While most agree that it is important, we often find advisory firms only think about it when they need it. That needs to change. It is time to be proactive, rather than reactive.
According to Schwab’s 2024 Benchmarking study, approximately 75% of an RIA’s annual expenses go towards staffing and compensation. Even if your firm is closer to 60%, wouldn’t it be prudent to have a plan in place to manage >60% of your expenses?
The answer is yes. Which is why this will be the first of a series of blog posts dedicated to the many elements that make up a comprehensive Talent Strategy. Today, our focus is on The Interview. The Interview is an area we oftentimes see advisors find challenging. What do you ask and how do you evaluate candidates to determine the best fit for your firm?
Here are our best practices for interviewing candidates, providing a selection of impactful questions and valuable tips for your next hire.
Getting Started: Your Interview Team
Before getting started, it is important to establish a diverse interview team that represents different roles, experiences, and backgrounds in your organization. This provides a comprehensive assessment of candidates' potential and showcases the firm's diversity and skill sets to your prospective employee.
The Evaluation
Once the team is in place, it is important to develop an objective and standardized evaluation process to ensure consistent feedback and objective assessments. A “New Candidate Evaluation Form” typically includes a list of skill areas relevant to the position, such as interpersonal skills, decision-making, motivation, teamwork, experience/job knowledge and emotional intelligence. Interviewers rate the candidate on each skill area using a standardized scale (e.g., poor, fair, moderate, strong, not applicable). The form should also include space for additional notes and an overall evaluation.
Here is a sample evaluation form that you can reference and use! Applicant Evaluation Form (Click Here).
Unconscious bias can impact hiring decisions. It is important to raise awareness of this issue within your firm and implement strategies to mitigate its effects. An Evaluation Form is one great way to do that.
Screening for Success
Once you have the team in place, along with an evaluation process, it is time to develop your list of questions.
“Screening Questions” are used at the beginning of the hiring process to determine if a candidate meets the basic qualifications for the position. These questions are typically asked during a brief phone interview after a candidate has submitted their resume and cover letter. Adding this step can save time and resources by eliminating unqualified candidates before the in-person interview stage. It's crucial to ask all candidates the same questions to ensure a fair and consistent evaluation process.
Here are a few examples:
- What is your current job status and reason for leaving?
- Why are you interested in this position and our firm?
- What relevant skills and experience do you bring to this role?
In addition to these general questions, you can also ask screening questions specific to the role you are hiring for. For instance, if you are looking for someone with strong customer service skills, you might ask them to describe a time when they went above and beyond to help a customer.
After the screening process, it is time for a deeper dive into the candidate's qualifications and fit within the company culture.
Top Interview Questions to Uncover Top Talent
Focus on past performance, cultural fit, and potential for future success. Here are some insightful questions to consider:
- Describe a difficult work situation and how you overcame it.
- What are the most important lessons you’ve learned from your work experience?
- Tell me about feedback you’ve received on your communication skills and how you've improved.
- Describe a time when you persuaded others to adopt a new idea.
- Tell me about a time when you prioritized a client's benefit even if it meant more work for you.
- Describe a disagreement you’ve had with a client and how you resolved it.
- Tell me about a situation that best represents your leadership style.
- If you were starting a company, what would be its top three values?
- Describe a successful team experience and your role in it.
- Tell me about a time when a team you were on didn't work well together. What happened?
- Describe one of your best and one of your poorest work-related decisions.
- How do you plan and organize your day/week? What tools do you use?
- Tell me about a time when you went above and beyond what was expected.
- Describe a time when you weren't motivated to do your best and how you handled it.
- Tell me about a goal you set for yourself and how you achieved it.
Source: Schwab Recruiting Handbook, Heartland HR & Payroll